J&K’s largest power project post moves to execution stage

Srinagar, Jul 31: In a significant step that marks the beginning of execution after years of delay, National Hydroelectric Power Corporation (NHPC) Ltd has floated a global tender for the 1856 MW Sawalkot Hydropower Project, the largest power project in Jammu and Kashmir.

The move follows a green signal from the Union Environment Ministry’s Forest Advisory Committee, which last week granted in-principle forest clearance for diversion of 847.17 hectares of forest land, clearing a long-pending hurdle.

The international tender, issued on July 29, is for the project’s first major phase: planning, design, and engineering.

According to NHPC’s official tender notice, “Online electronic bids are invited by NHPC on International Competitive Bidding (ICB) basis for works of ‘Lot-1 Package: Planning, Design and Engineering (PDE) works for execution of 1856 MW Sawalkote Hydro Project located near Sidhu village in Ramban district of J&K.’”

A senior NHPC official involved in the project planning said, “This tender represents the formal launch of execution works after decades of standstill. We are beginning with design and engineering to ensure the project’s technical robustness before civil works begin.”

The Rs 200 crore package is expected to lead to full-scale construction, subject to final environmental clearance from the J&K government and completion of regulatory formalities.

A top official in the J&K administration confirmed that the project was now being treated as a matter of national priority.

“The Sawalkot project is being handled in mission mode. All clearances are being expedited. Tendering is a milestone, and we anticipate on-ground activity to begin soon,” the official said, requesting anonymity due to the sensitivity of inter-ministerial coordination.

The central government’s decision to fast-track the project came in the immediate aftermath of the April 2025 Pahalgam attack, in which 26 persons were killed.

In its wake, India announced the suspension of the Indus Waters Treaty with Pakistan, arguing that national security interests warranted a review of all bilateral water-sharing arrangements.

“The Chenab River, on which Sawalkot is being built, is one of the western rivers under the Indus Waters Treaty. With the suspension in place, projects like Sawalkot are not only developmental but also strategic. We are now moving to fully utilise our share of water,” the official said.

Once completed, the Sawalkot project is expected to transform the power landscape of J&K.

The project would feature nine turbines installed in an underground powerhouse, a reservoir capacity of over 500 million cubic meters, and a projected annual electricity generation of 8000 million units (MU).

The estimated project cost stands at Rs 22,700 crore, though officials caution that prolonged delays could inflate it beyond Rs 30,000 crore.

The project has been granted in-principle forest clearance, but it is conditional.

NHPC must implement a soil and moisture conservation plan and adhere strictly to dam safety protocols.

In mitigation, NHPC has proposed compensatory afforestation over 2115 hectares of degraded forest land within the same region.

Still, local environmental groups have flagged concerns over the impact on fragile Himalayan ecosystems and the displacement of affected communities.

However, the Centre sees the project in a broader geopolitical light.

A senior Power Ministry official said, “Hydropower in the Himalayan region is not just about electricity. It’s also about long-term water security and asserting India’s rights under international treaties. Sawalkot is a flagship in that vision.”

The Indus Waters Treaty, signed in 1960 and brokered by the World Bank, allocates the eastern rivers – Ravi, Beas, and Sutlej - to India and the western rivers – Indus, Chenab, and Jhelum - to Pakistan.

While it has survived wars and diplomatic crises, India’s suspension of the treaty following the Pahalgam attack marks a turning point in the subcontinent’s hydro-diplomacy. With the Sawalkot project now moving into execution, it stands at the intersection of infrastructure, environment, and geopolitics, embodying a strategic shift in how India approaches both energy development and cross-border water management.